Govt approves Rs. 1.62 lakh cr proposals from 13 states.

The government has approved sanction of Rs. 1.62 lakh crore proposals from 13 states with result-oriented Revamped Distribution Sector Scheme (RDSS). Of this, around Rs. 88,000 crore has been earmarked for smart–metering and around Rs. 75,000 crore for infrastructure upgradation toward loss reduction efforts, according to sources.

The top seven states account for over 87% of the approvals in value terms led by Uttar Pradesh (Rs. 35,702), Tamil Nadu (Rs. 28,301), Rajasthan (Rs. 18,627), Madhya Pradesh (Rs. 18,172), Gujarat (Rs. 16,559), Andhra Pradesh (Rs. 13, 405) and Kerala (Rs. 10,578), the sources said.

A senior government official said the money will be disbursed over the next five years. The scheme aims to enhance operational efficiency and financial health of power distribution companies by 2025-26.

At Rs. 19,235 crore Tamil Nadu got the highest allocation for smart metering, followed by Uttar Pradesh at Rs. 18,956 crore. Uttar Pradesh received the highest Rs. 16746 crore allocation for infrastructure upgradation followed by Rs. 9,403 crore to Madhya Pradesh.

The other states include Assam, Rajasthan, Jammu and Kashmir, Meghalaya, Mizoram, Andhra Pradesh, Gujarat, Himachal Pradesh, Kerala and Uttarakhand.

Under the scheme, most states have agreed to take over financial losses of their distribution companies - either partially or fully. All states plan to liquidate 100% of the government department dues by FY25. In case the states are unable to meet the set-out milestones, they would not be eligible for availing the amount.

ET